Stock markets in free fall on gathering global gloom

LONDON: World stock markets plunged deep into negative territory Friday as gloom gathered over the global economy and dismal corporate news left investors stunned.

"Everyone is staring at their screens in disbelief," said Tom Hougaard, chief market analyst at City Index.

On Wall Street the Dow Jones Industrial Average plunged 4.69 percent to 8,287.36 in the first 10

MARKET SNAPSHOT: U.S. Stocks Come Back From Day's Lows After Sharp Plummet

By Kate Gibson

U.S. stocks came off their worst levels but remained deeply mired in red Friday, and headed for weekly losses as energy shares fronted broad-sector declines after a global sell-off in equities on fears of worldwide recession.

"I opened my trading platform this morning and thought I must be at a funeral, " said Charles Perry, president of Perry Management, an energy-consulting firm. "But the market seems to be firming now."

After dropping 420 points, the Dow Jones Industrial Average (DJI) trimmed its decline, recently off 260.37 points, or 3%, to 8,430.88, far off an intraday low of 7,773.7 hit two Fridays ago, and setting it up for a weekly drop of 4.8%.

All but one of the blue-chip index's 30 components posted midday declines, with Microsoft Corp. (MSFT) digging out of negative terrain, recently up 1% following its report of a small profit gain for the September quarter. .

General Motors Corp. (GM) fell the most, down nearly 14%.